ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
NYSE:BUD - New York Stock Exchange, Inc. - US03524A1088 - ADR - Currency: USD
BUD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 33 industry peers in the Beverages industry. There are concerns on the financial health of BUD while its profitability can be described as average. BUD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BUD had positive earnings in the past year.
In the past year BUD had a positive cash flow from operations.
BUD had positive earnings in each of the past 5 years.
Each year in the past 5 years BUD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BUD (3.37%) is comparable to the rest of the industry.
BUD has a Return On Equity (8.82%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.35%, BUD perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
BUD had an Average Return On Invested Capital over the past 3 years of 6.05%. This is below the industry average of 11.01%.
The last Return On Invested Capital (6.35%) for BUD is above the 3 year average (6.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROIC | 6.35% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
Looking at the Profit Margin, with a value of 12.16%, BUD is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
In the last couple of years the Profit Margin of BUD has declined.
BUD has a Operating Margin of 26.51%. This is amongst the best in the industry. BUD outperforms 81.82% of its industry peers.
In the last couple of years the Operating Margin of BUD has declined.
BUD has a better Gross Margin (55.70%) than 78.79% of its industry peers.
In the last couple of years the Gross Margin of BUD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BUD is creating some value.
The number of shares outstanding for BUD has been reduced compared to 1 year ago.
Compared to 5 years ago, BUD has more shares outstanding
The debt/assets ratio for BUD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that BUD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.70, BUD perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
BUD has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as BUD would need 6.48 years to pay back of all of its debts.
The Debt to FCF ratio of BUD (6.48) is better than 63.64% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that BUD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, BUD is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.02
WACC6.21%
2.3 Liquidity
BUD has a Current Ratio of 0.64. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
BUD's Current ratio of 0.64 is on the low side compared to the rest of the industry. BUD is outperformed by 81.82% of its industry peers.
BUD has a Quick Ratio of 0.64. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.48, BUD is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
BUD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.61%, which is quite good.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.83% on average per year.
The Revenue has decreased by -2.35% in the past year.
Measured over the past years, BUD shows a small growth in Revenue. The Revenue has been growing by 2.69% on average per year.
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
3.2 Future
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.24% on average per year.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.24%
Revenue Next Year2.16%
Revenue Next 2Y3.77%
Revenue Next 3Y3.89%
Revenue Next 5Y4.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.25, BUD is valued correctly.
Based on the Price/Earnings ratio, BUD is valued a bit cheaper than 78.79% of the companies in the same industry.
BUD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.38, which indicates a correct valuation of BUD.
78.79% of the companies in the same industry are more expensive than BUD, based on the Price/Forward Earnings ratio.
BUD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued a bit cheaper than 78.79% of the companies in the same industry.
93.94% of the companies in the same industry are more expensive than BUD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.48 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BUD's earnings are expected to grow with 12.23% in the coming years.
PEG (NY)3.94
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
BUD's Dividend Yield is comparable with the industry average which is at 2.80.
With a Dividend Yield of 1.34, BUD pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
BUD pays out 51.68% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
63.06
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners19.76%
Inst Owner Change-2.65%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap122.22B
Analysts83.75
Price Target83.83 (32.94%)
Short Float %0.49%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.01%
Max EPS beat(2)8.16%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)1.01%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)7.13%
EPS beat(12)12
Avg EPS beat(12)8.52%
EPS beat(16)14
Avg EPS beat(16)8.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.02%
PT rev (3m)3.91%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)7.88%
EPS NY rev (1m)3.21%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)3.17%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.38 | ||
| P/S | 2.09 | ||
| P/FCF | 10.48 | ||
| P/OCF | 8.05 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.98 |
EPS(TTM)3.88
EY6.15%
EPS(NY)4.38
Fwd EY6.95%
FCF(TTM)6.02
FCFY9.54%
OCF(TTM)7.84
OCFY12.43%
SpS30.19
BVpS41.62
TBVpS-38.8
PEG (NY)3.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROCE | 8.71% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 76.01% | ||
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% | ||
| FCFM | 19.92% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 72.68% | ||
| Profit Quality | 163.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.7 |
F-Score7
WACC6.21%
ROIC/WACC1.02
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
EPS Next Y4.12%
EPS Next 2Y8.45%
EPS Next 3Y12.23%
EPS Next 5Y12.24%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
Revenue Next Year2.16%
Revenue Next 2Y3.77%
Revenue Next 3Y3.89%
Revenue Next 5Y4.36%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.75%
EBIT Next 3Y16.41%
EBIT Next 5Y12.37%
FCF growth 1Y56.54%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y19.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%